Insteel Industries Inc (IIIN)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.87 | 10.24 | 10.13 | 8.70 | 8.78 | |
| DSO | days | 41.15 | 35.66 | 36.04 | 41.97 | 41.56 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.87
= 41.15
Insteel Industries Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.
The DSO for Insteel Industries Inc has shown some fluctuation over the past five years. In 2024, the DSO increased to 41.15 days from 35.66 days in 2023, indicating a slight deterioration in the efficiency of receivables collection. However, this DSO level is still lower than in 2022 and 2021.
Comparing the most recent DSO to that of 2020, there has been a slight improvement. This suggests that Insteel Industries Inc may have enhanced its collection efforts relative to the previous year.
Overall, while the recent increase in DSO could be a cause for some concern, it is important for Insteel Industries Inc to monitor its receivables management closely to ensure efficient cash flow and timely collections going forward.
Peer comparison
Sep 30, 2024